Thursday, September 6, 2007

Deal to take AVP private terminated

by Jason Schock at 3:08 PM

Shamrock Holdings terminated its agreement to purchase AVP, Inc. today after a major shareholder indicated it would vote against the merger. The $37 million buyout would have given shareholders about $1.23 per share — barely above market value.

AVP has been struggling to turn a profit since Len Armato rebuilt the tour and took it public in 2001.

Net income:
  • 01-02: -2.95M
  • 02-03: -0.85M
  • 03-04: -1.10M
  • 2004: -2.87M (8 months)
  • 2005: -8.96M
  • 2006: -0.34M
  • 2007 (Q2): -1.24M
Depending on how well the events do July-September, the AVP may yet show a profit in 2007. I'm guessing this would probably give it a significant boost in investor interest, especially with the 2008 Olympics less that a year away and American teams poised to do very well.

Despite the financial shortcomings, I think most folks would agree the tour is looking better than ever. The challenge now is to get the level of interest up. Hot scene in Top Gun 2?

 

1 comments:

Anonymous said...

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- Steve